MIC's investment arm Maika Holdings today said that it would apply to set aside an injunction obtained against it by a shareholding company to stop the sale of its insurance subsidiary.

Calling all its shareholders to remain patient, Maika said that it would be doing "all things necessary in the interest of the large number of minority shareholders".

The troubled company said in a statement that these shareholders were eagerly awaiting for the refund of their investment, which could not be done now due to the injunction.

The injunction , obtained yesterday by Koperasi Nesa Pelbagai Bhd, effectively stops Maika from selling its only profit-making business entity Oriental Capital Assurance Bhd (OCAB).

Nesa has 625,000 shares in Maika and is led by former MIC deputy president S Subramaniam.

Nesa also claimed that the injunction was necessary to stop the sale of OCAB for RM129.8 million as the approval for the sale was not properly gained due to the manner Maika'a annual general meeting was conducted on Aug 30.

The cooperative was unhappy with the fracas-filled meeting which resulted in most shareholders not voting to decide on the proposed sale.

Many shareholders also felt that the sale of OCAB would only mean the sounding of the death knell for the investment company.

Shareholders effected

Nesa has also filed a suit asking for the AGM and all resolutions passed therein to be ruled null and void and be set aside.

Responding to the injunction order today, Maika said that the order was obtained by Nesa without the knowledge and presence of Maika in the Kuala Lumpur High Court.

However, the High Court has set Oct 8 to hear the matter with the presence of both parties.

"Until the outcome of the Oct 8 hearing, the resolutions passed at the AGM cannot be acted upon by the company," said Maika in its statement.

"This new development has effectively delayed the finalisation of the sale of the insurance company and the distribution of surplus to the shareholders," it added.

Maika also said that it would not be issuing any further statements as the matter was still pending with the court.

Maika, founded by MIC president S Samy Vellu, has been in financial turmoil for several years now following the failure of its long list of business ventures and investments. It is headed by Samy Vellu's son, Vell Paari.

The investment company was established in 1982, purportedly to enable Indian Malaysians to have a share in the country's economic growth. It raised RM106 million from 66,000 investors.